Semiconductor stocks led Friday's premarket decline as the Nasdaq marks its fourth consecutive down day.

The Selloff Widens

ON Semiconductor dropped nearly 15% in premarket trading Friday as the Nasdaq extended losses into its fourth consecutive down day. The broad decline reflects renewed caution in the tech sector after months of AI-driven enthusiasm.

Collateral Damage Spreads

ON wasn't alone. Avery Dennison fell 6.1%, while SanDisk dropped 5.4%, suggesting weakness across multiple tech-adjacent names. The pattern points to a broader sector rotation as investors reassess growth-heavy positioning.

What's Happening

Multiple factors are cited as pressuring valuations: memory chip supply dynamics and data center economics weigh on sector sentiment. After an extended run higher, semiconductor stocks face headwinds from both operational concerns and stretched valuations relative to near-term earnings visibility.

What Traders Are Watching

The four-day Nasdaq losing streak signals a broader market reassessment rather than an isolated event. For semiconductor investors, the key question remains whether this reflects a healthy valuation reset or signals deeper tech sector weakness ahead.